THE AUDITORS INSTITUTE | FORUM

Archived Forums

When you become a member of The Auditors Institute, you immediately gain access to expertise, advocacy for your profession and peace of mind.

Ask a question in our members-only forum or use the search function to find prior technical discussions on your topic. You can expect a response within 24-48hrs.

Want to become a Member?

Join Now

Already a Member?

Disclaimer

The forum is made available by The Auditors Institute Ltd for the benefit of it’s members only, and its primary purpose is to facilitate education, training, and discussion between members. The information and answers provided within the forum are of a general nature and do not consider any specific circumstances, objectives, financial situation or needs related to the matter/s raised. The responses should not be construed as financial advice, and each Member should seek their own professional advice before making any decisions. The Auditors Institute Ltd and its representatives are not responsible for any actions taken based on the information provided in the forum.

To test this feature, visit your live site.

Kylie Wee

Jun 30, 2023

Death of both individual trustees

in SMSF Technical Forum

Hi All,

There is a Fund with two individual trustees, being the mother (the only member) and the son. The mother passed away on May 2022 and unfortunately the son passed away earlier on March 2022. As per review of the Will, the daughter is appointed to be the Executor of the Fund. The death benefit has not being paid as of today and the LPR is not acting as trustee of the Fund. There is no deed of appointment nor consent to act as trustee in place.

Per S. 17A of SISA, my understanding is that the Fund needs to appoint the executor as trustee of the Fund as it has exceeded the timeframe of 6 months and will need to appoint a second individual trustee or set up a corporate trustee. Please advise your thoughts on this?

Furthermore, in this case, will there be a breach of S.17A for 2022 year audit?

Could you please advice your thoughts? Thank you.

Regards,

Kylie

2 comments

Comments (2)

THE AUDITORS INSTITUTE

Jun 30, 2023

Hi Kylie

Yes section 17A of SIS would be breached if the LPR has not been appointed within 6 months of death of each trustee (section 17A(4)).

I would be questioning who is going to sign the 2021/22 accounts / ITR if both trustees have died and no LPR has been appointed to act as trustee or trustees of the Fund.

Thanks

SMSF AAA

Kylie Wee

Jul 04, 2023

Replying to

Hello,

Duly noted.

Thank you for your insight.

Regards,

Kylie